Question: Solve it in EXCEL Consider the following cash flows reported in nominal terms (current year prices): Assuming the nominal discount rate is equal to the

Solve it in EXCEL
Consider the following cash flows reported in nominal terms (current year prices): Assuming the nominal discount rate is equal to the nominal interest rate. If the inflation rate is 3% and the real interest rate is 5%. Find the following: a) The nominal discount rate is: % b) The nominal net present value is: $ c) The nominal internal rate of return for the project is: % d) If the hurdle rate is 15% the investor should (accept/reject) the project. Provide a detailed reason in your spreadsheet. Provide your answers to 2 decimal places. Provide a detailed explanation in your spreadsheet. Show all working in Excel. Marks will be deducted if you do not explain your answers
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
